RBI imposes penalty on Nagarik Samabay Bank Ltd., Guwahati
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1,00,000 on Nagarik Samabay Bank Ltd., Guwahati under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to cooperative societies). RBI found violations of the KYC and cash transaction guidelines and PMLA-related obligations for urban co-operative banks, and concluded that the bank's reply did not rebut the substantiated breaches.
RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to cooperative societies) after finding that Nagarik Samabay Bank Ltd., Guwahati had violated para 4(i) of the KYC and Cash Transactions circular dated September 18, 2002, read with para 1.7 of the annex to the circular dated September 21, 1993, and para 6 of the circular dated March 21, 2006 on Prevention of Money Laundering Act, 2002 obligations of banks in terms of rules notified thereunder for UCBs. The bank had submitted a written reply to the show-cause notice, but RBI held the violations substantiated and warranting penalty.
Severity Assessment
This is a monetary penalty of ₹1 lakh, which falls in the lowest monetary band and has no operational restriction component.
The bank must absorb the monetary penalty; the release does not describe any ongoing business restriction, suspension, or cancellation. The practical impact is limited to the financial penalty and compliance signal to the bank and similarly regulated UCBs.
Published as Nagarik Samabay Bank Ltd., Guwahati
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